DOJ Seizes Multiple Domains of Russian-Associated Crypto Exchanges in the United States

The U.S. Department of Justice (DOJ) took over the domains of three crypto exchanges, UAPS, PM2BTC, and Cryptex, in a significant move against international cybercrime.

The U.S. authorities have acquired the domains of these exchanges after obtaining court authorization. The government will now greet individuals who attempt to access these sites by displaying a notice that indicates their the loss as a result of unlawful activities.

The Department of Justice (DOJ) issued a statement on September 26 in which it accused two Russian citizens of participating in the establishment of a substantial money laundering scheme that involved a global network of cybercriminals. Sergey Ivanov, also known as “Taleon,” is accused of overseeing a variety of money laundering services for many different cybercriminals, as indicated by unsealed court documents. The purported target audience for these services was darknet drug traffickers and ransomware groups.

Between July 2013 and August 2024, it is alleged that Ivanov was responsible for the operation of Russian-based payment and exchange services, such as UAPS, PinPays, and PM2BTC. These services were used to facilitate approximately $1.15 billion in digital asset transactions for money laundering activities.

Cryptex, an additional cryptocurrency exchange that was implicated in money laundering, was found to have processed transactions totaling $1.4 billion. Approximately 31% of this amount is directly associated with criminal activities. U.S. authorities confiscated the domains “Cryptex.net” and “Cryptex.one,” which purportedly provided users with anonymity by avoiding know-your-customer (KYC) compliance requirements. Like UAPS and PM2BTC, this platform was explicitly promoted on forums that are frequently visited by cybercriminals.

Furthermore, Timur Shakhmametov, a Russian national, has been indicted for operating Joker’s Stash, one of the largest carding websites in history. This website is infamous for the sale of stolen credit and debit card information. In a manner similar to Ivanov, Shakhmametov is purportedly responsible for the promotion of Joker’s Stash and its stolen card details on a variety of cybercrime forums.

A blockchain analysis of cryptocurrency revealed that these exchanges were responsible for approximately 32% of all traced Bitcoin transactions. Within the illicit transactions, fraud was associated with over $158 million in Bitcoin, ransomware payments accounted for over $8.8 million, and darknet drug markets were the source of approximately $4.7 million.

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